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  2. Board Of Aldermen - Agenda - 2/19/2019 - P8

Board Of Aldermen - Agenda - 2/19/2019 - P8

By dnadmin on Sun, 11/06/2022 - 22:43
Document Date
Fri, 02/15/2019 - 11:56
Meeting Description
Board Of Aldermen
Document Type
Agenda
Meeting Date
Tue, 02/19/2019 - 00:00
Page Number
8
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_a__021920…

Mr. Steven A. Bolton
Corporation Counsel
January 30, 2019
Page Three

Other Approvals. As a regulated public utility, PWW must obtain approval of the loan from the
New Hampshire Public Utilities Commission (“NHPUC”), which will approve the loan if it finds
the loan to be consistent with the public good. PWW will file a petition for approval with the
NHPUC in the last week of January or first week of February, 2019, and expects the NHPUC to
consider the petition promptly. Under the Trust Fund, the loan must also be approved by the
Governor and Executive Council.

Lower Costs Are Good for Customers. Pennichuck and its Board of Directors have
determined that the capital project to be financed by. the Trust Fund loan will allow PWW to
continue to provide safe, adequate and reliable water service to its customers on a cost-effective
basis. The terms of the financing through the Trust Fund are very favorable compared to other
alternatives and will result in lower financing costs than would be available under other debt
options. These lower financing costs will be passed on to customers.

Requested Approvals. For the reasons described above, Pennichuck respectfully requests that
the City, acting in its capacity as sole shareholder of Pennichuck and pursuant to Article [X(3) of
Pennichuck’s Articles of Incorporation, authorize the following actions:

RESOLVED, that the City hereby approves the borrowing by Pennichuck Water
Works, Inc. of up to $5,500,000 from the State of New Hampshire pursuant to the New
Hampshire Drinking Water and Groundwater Trust Fund to fund the Merrimack River
Raw Water Intake project;

FURTHER RESOLVED, that the City hereby approves the guaranty by Pennichuck
Corporation of the payment by Pennichuck Water Works, Inc. of the loan authorized in
the prior resolution; and

FURTHER RESOLVED, that the City hereby authorizes Pennichuck Corporation and
Pennichuck Water Works, Inc., their Boards of Directors, and their Officers, to take any
and all actions required to obtain all necessary approvals with respect to the actions
described in these resolutions and to execute and deliver such documents as are
necessary to effect the Trust Fund loan and the guaranty described in these resolutions.

Respectfully submitted,

PENNICHUCK CORPORATION

By: S Lh

Larry D. Goodhue
Chief Executive Officer

cc. Mayor James Donchess

Page Image
Board Of Aldermen - Agenda - 2/19/2019 - P8

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